Premier League clubs have agreed to develop a new financial system following widespread criticism of the application of the competition’s current Profit and Sustainability Rules.
Last November, Everton were plunged into a relegation battle after being deducted 10 points for breaching the Premier League’s financial rules over a four-year period ending in 2022.
That deduction was later reduced to six points on appeal, though the Toffees could face a further penalty after being charged with another breach in the assessment period ending last year.
Nottingham Forest have also been charged with breaking the rules during the same period, with the outcome of both clubs’ hearings expected to be made public before mid-April.
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Last week, reports suggested Leicester City may also be charged with exceeding the competition’s maximum allowed loss limit – currently £105million every three years – if they win promotion from the Championship this season.
The lack of an established set of penalties for breaching the rules, as well as the slow progress of the Premier League’s case against Manchester City – who have been charged with 115 breaches of competition rules – has led to criticism from some quarters.
Many have suggested the rules should be brought in line with UEFA’s ‘squad cost’ control measures, and on Monday, it was confirmed that changes are in the pipeline.
Premier League clubs today agreed to prioritise the swift development and implementation of a new League-wide financial system.
Clubs also re-confirmed their commitment to securing a sustainably-funded financial agreement with the EFL.
— Premier League (@premierleague) March 11, 2024
However, Premier League clubs are yet to reach an agreement on a new financial settlement with the English Football League, amid suggestions a new government regulator could force a deal upon them.
The competition’s stakeholders outlined their commitment to reaching an agreement in a statement on Monday, which read: “At a Premier League shareholders’ meeting today, clubs agreed to prioritise the swift development and implementation of a new league-wide financial system.
“This will provide certainty for clubs in relation to their future financial plans and will ensure the Premier League is able to retain its existing world-leading investment to all levels of the game.
“Alongside this, Premier League clubs also re-confirmed their commitment to securing a sustainably funded financial agreement with the EFL, subject to the new financial system being formally approved by clubs.
“The league and clubs also reaffirmed their ongoing and longstanding commitment to the wider game which includes £1.6billion distributed to all levels of football across the current three-year cycle.
“The Premier League’s significant funding contributions cover all EFL clubs and National League clubs, as well as women’s and girls’ football, and the grassroots of the game.”
